The terms copy and social trading are sometimes still considered the same. In fact, the two are actually two different trading strategies in the forex market, you know! Then, what's the difference and what benefits can you feel by becoming a copy trading investor, huh? Let's see the full explanation below. Happy reading!
What is the difference between Social and Copy Trading?
Actually, the term copy trading is not a completely new term, you know! Because this one term seems to have appeared and was known by investors in other financial markets in the 2000s, such as in the forex trading market. And over time, this term has also expanded and has also begun to be known among crypto currency traders, aka cryptocurrencies.
While the difference between copy and social trading mainly lies in the flow or system that occurs in it. For social trading itself, here the pro traders will only share their trading strategies. After that, other traders will copy the strategy of the pro trader with the aim of making a profit.
Meanwhile, it is different with copy trading. Because here, investors copy traders will be able to copy alias copy trading positions made by other traders who are more pro and experienced. This can be done by linking or linking the accounts you have.
Therefore, this method is most often used by beginners who have just or recently been in the trading world. Because, this one method is very profitable, and of course you can also feel it by becoming a copy trading investor.
Advantages of Being a Copy Trading Investor
1. Saving Time
One of the advantages that you can feel through this copy trading method is the shorter trading time, especially when compared to the trading process that you do yourself. You see, you only need to mirror the trading activities of pro traders to your account, so that your trading activities will also run on their own.
However, this also means that you have to be careful in choosing a trader, yes! Because if it turns out that the trader whose activities you copy or mirror to your account is not a reliable trader, of course you will also feel the impact.
2. Can Trade While Learning
Of the various methods, tips, and ways of learning to trade that are out there, there is no doubt that learning by doing is one of the most effective ways. And by becoming a copy trading investor, you can actually feel these benefits, you know. Why? Because you can not only jump straight into the trading market, but also learn by observing the positions and actions taken by pro traders when trading in the market, in any situation.
3. Less Risk Of Loss
As a beginner, you certainly don't want to lose immediately when you start trading, right? Especially if the loss is large. And fortunately, you can avoid this risk by becoming a copy trading investor, you know!
Well, that's a brief summary of copy trading investors, including the 3 main advantages that you can feel too. How, are you getting more interested in trying?